SUMMARY OF TENTATIVE AGREEMENT BETWEEN COMMUNICATIONS WORKERS OF AMERICA DISTRICT 2-13 and DISTRICT 7 AND AT&T CORP. MID-ATLANTIC & WEST FEBRUARY

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1 SUMMARY OF TENTATIVE AGREEMENT BETWEEN COMMUNICATIONS WORKERS OF AMERICA DISTRICT 2-13 and DISTRICT 7 AND AT&T CORP. MID-ATLANTIC & WEST FEBRUARY

2 DIRECTV/AT&T CORP. MID-ATLANTIC AND WEST SUMMARY TENTATIVE AGREEMENT FEBRUARY 16, 2017 After bargaining with AT&T Corp. on a transition agreement for DirecTV Field Service Technicians, Warehouse Assistants, Office Coordinators, Administrative Support Assistants, CWA and AT&T Corp. have reached a tentative agreement on the terms and conditions of employment for approximately 300 bargaining unit members at AT&T. This agreement provides for language preventing technicians from being sent home after reporting to work for a full tour; savings in healthcare costs; participation in AT&T s Success Sharing Plan (SSP) and provides for increases in wages and the ability to have both a pension and 401(K). Duration of Contract: The terms of the contract will become effective, unless otherwise noted, upon Ratification, and will remain in effect until 11:59 p.m., April 9, Wages and Other Compensation All employees will receive 2 wage increases within a 20-day span. The first increase will be effective 3/19/17 and the second increase will be a 3% increase on 4/9/2017. a. General Wage Increase. The increases listed below are applied to all steps in the basic wage schedules on the date indicated: Effective 3/19/2017, all titles will receive an increase in pay when they are moved to a new wage scale (see new wage schedules for this 3/19/17 increase in the charts below). Effective April 9, 2017, wage schedules for all titles will be increased by 3%. A progression increase for all titles will occur on both 9/17/17 and 3/18/18 now that DTV is part of the Legacy T AT&T contract. Summary Page 2

3 The minimum time interval between steps will be six (6) months. (Effective 3/19/2017) Premise Technician (Time in Title/Location: 36/12 months) Wage Area (Albany, OR; Albuquerque, NM; Bend, OR; Denton, MD; Dover, DE; Hanover, MD; Medford, OR; Portland, OR; Wyoming, DE) (Zone A) Step Weekly Wage 1 $ $ $ $ $ $ $ $ $ $ $ Premise Technician (Time in Title/Location: 36/12 months) Wage Area (Alamogordo, NM; Clovis, NM; Portales, NM) (Zone B) Step Weekly Wage 1 $ $ $ $ $ $ $ $ $ $ $ Summary Page 3

4 Administrative Support Assistant (Time in Title/Location: 36/12 months) Wage Area (Hanover, MD) (Zone A) Step Weekly Wage 1 $ $ $ $ $ $ $ $ $ $ $ Office Coordinator (Time in Title/Location: 36/12 months) Wage Area (Albany, OR; Albuquerque, NM; Hanover, MD) (Zone A) Step Weekly Wage 1 $ $ $ $ $ $ $ $ $ $ $ Summary Page 4

5 Warehouse Assistant (Time in Title/Location: 36/12 months) Wage Area (Albany, OR; Albuquerque, NM; Bend, OR; Denton, MD; Hanover, MD; Medford, OR) (Zone A) All inclusive Step Weekly Wage 1 $ $ $ $ $ $ $ $ $ $ $ Warehouse Assistant (Time in Title/Location: 36/12 months) Wage Area (Alamogordo, NM) (Zone B) Step Weekly Wage 1 $ $ $ $ $ $ $ $ $ $ $ Summary Page 5

6 b. Success Sharing Plan (SSP). CWA members will be eligible to receive annual lump sum cash payments based on AT&T s stock price appreciation and AT&T dividend rate. The award payout for 2018 will be made during the last full pay period in November c. Sunday Premium The first eight (8) hours worked on Sunday will be paid at time and a half (1 ½). In addition, all hours count towards the overtime build for the week. 2. Work related language a. Seniority All Net Credit Service (NCS) time earned under DirecTV will count towards Term of Employment (TOE) with AT&T Corp. b. Overtime A limit/cap of 17 hours on the amount of overtime hours technicians can be forced to work in a week. This does not limit the number of volunteer hours an employee can work. c. Schedules All schedules will be posted 1 week in advance. If a technician is not given notice of a schedule change at least 12 hours in advance, they will receive 2-hours pay. d. Cancellation of Hours - If an employee begins the scheduled workday, management cannot cancel the employee s hours for the remainder of that workday. 3. Time Off a. Holidays 6 paid holidays will be observed: New Year s Day Memorial Day Independence Day Labor Day Thanksgiving Day Christmas Day Summary Page 6

7 1). When a holiday falls during a week in which an employee is on vacation, the day will be treated as a holiday, not as a vacation day. 2). Holidays that fall on a Sunday will be observed on the following Monday. When a holiday falls on a Saturday, and an employee is not scheduled to work, employees will be given another day off in a subsequent week or a preceding week as determined by the Company. b. Vacation -One (1) week of vacation upon completion of six (6) months of service -Two (2) weeks of vacation upon completion of twelve (12) months of service. -Three (3) weeks of vacation to any employee who could complete seven (7) years of service or more but less than fifteen (15) years of service within the vacation year. -Four (4) weeks of vacation to any employee who could complete fifteen (15) years of service or more but less than twenty-five (25) years of service within the vacation year. -Five (5) weeks of vacation to any employee who could complete (25) years of service or more within the vacation year. c. Personal Days Off Each employee who has completed six (6) months of service will be eligible for eight (8) paid personal days off each vacation year. 4. Personal Illness a. After one (1) year of service employees shall be paid for absences due to personal illness on scheduled workdays, up to five (5) paid days not to exceed forty (40) hours per calendar year. Summary Page 7

8 5. Health Care a. AT&T began implementing the non-bargaining management plans (Gold, Silver, Bronze) while DIRECTV employees were organizing for union protection and held an open enrollment for DIRECTV members to join those plans before they began bargaining with your representatives. Under this agreement, DIRECTV members will be in those management plans until June 1, After June 1, 2017, DTV employees will have 2 options to choose from at lower rates. Provision Eligibility for Company Subsidy Current Employees, 2009 New Hires, 2012 New Hires and 2015 New Hires No change from current program except as provided below. Individual Coverage: Company subsidy for Employees enrolled in Company sponsored Individual medical coverage (including fully insured coverage options, if available) will continue to begin on the first day of the month in which 90 days of net credited service (NCS) is attained (also referred to as term of employment (TOE)). Employees with less than 90 days of NCS will be eligible to enroll in Company sponsored medical coverage (including fully insured coverage options, if available) but are required to pay 100% of the cost of coverage. Family Coverage: Company subsidy for Employees enrolled in Company sponsored medical coverage other than Individual coverage will continue to begin on the first day of the month in which 6 months of net credited service (NCS) is attained (also referred to as term of employment (TOE)). Employees with less than 91 days of NCS may enroll in Company sponsored medical coverage (including fully insured coverage options, if available) but are required to pay 100% of the cost of coverage. Employees with more than 90 days of NCS and less than 6 months of NCS may enroll in Company sponsored medical coverage (including fully insured coverage options, if available) but are required to pay 100% of the cost of coverage reduced by the company subsidy for the Individual coverage tier. Summary Page 8

9 Active (Full Time) Monthly Contributions Current Employees, 2009 New Hires & 2012 New Hires have a choice between the following options: Monthly Contribution Amounts Individual $96 $119 $129 Family $214 $246 $267 Monthly Contribution Amounts Individual $24 $36 $50 Family $60 $89 $ New Hires have a choice between the following two options: Contribution Amounts Individual $161 $173 $176 Family $332 $356 $362 Contribution Amounts Individual $73 $80 $90 Family $181 $200 $222 Active (Part Time) Monthly Contributions No change from current program. Summary Page 9

10 Provision Annual Deductibles Current Employees, 2009 New Hires, 2012 New Hires and 2015 New Hires Network & Non-Network Network & Non-Network Network & Non-Network Traditional Traditional Traditional Ind $550 $1,300 $ 550 $1,300 $ 600 $2,100 Family $1,100 $2,600 $1,100 $2,600 $1,200 $4,200 Annual Deductible Provisions: No change from current program. Network & Non-Network Network & Non-Network Network & Non-Network Traditional Traditional Traditional Ind $1,300 $3,900 $1,300 $3,900 $1,300 $3,900 Family $2,600 $7,800 $2,600 $7,800 $2,600 $7,800 Annual Deductible Provisions: No change from current program except as provided below: If the coverage tier is Family, no individual can receive benefits until the family Annual Deductible is met. The family Annual Deductible can be met by one or a combination of covered family members. The following costs paid by the participant also apply toward the applicable Network & Traditional Indemnity or Non Network Deductible amounts: Prescription drug allowable charges of eligible expenses. General CoPay/Coinsurance Option1: Preventive $0 / 0% No Benefit $0 / 0% No Benefit $0 / 0% No Ded waived Ded waived Ded waived Benefit Sickness/Illness $0 / 10% $0 / 40% $0 / 10% $0 / 40% $0 / 10% $0 / 50% Option2: Preventive $0 / 0% No Benefit $0 / 0% No Benefit $0 / 0% No Ded waived Ded waived Ded waived Benefit Sickness/Illness $0 / 10% $0 / 50% $0 / 10% $0 / 50% $0 / 10% $0 / 50% Provision Current Employees, 2009 New Hires, 2012 New Hires and 2015 New Hires Summary Page 10

11 Office Visit Copay / Coinsurance Preventive $0 / 0% No Benefit $0 / 0% No Benefit $0 / 0% No Benefit Ded waived Ded waived Ded waived Sickness/Illness $0 / 10% $0 / 40% $0 / 10% $0 / 40% $0 / 10% $0 / 50% Preventive $0 / 0% No Benefit $0 / 0% No Benefit $0 / 0% No Benefit Ded waived Ded waived Ded waived Sickness/Illness $0 / 10% $0 / 50% $0 / 10% $0 / 50% $0 / 10% $0 / 50% Urgent Care Facility/Professional Services Copay / Coinsurance $0 / 10% $0 / 40% $0 / 10% $0 / 40% $0 / 10% $0 / 50% $0 / 10% $0 / 50% $0 / 10% $0 / 50% $0 / 10% $0 / 50% Summary Page 11

12 Provision Emergency Room Facility/Professional Services Copay / Coinsurance (Emergencies) Current Employees, 2009 New Hires, 2012 New Hires and 2015 New Hires $0 / 10% $0 / 10% $0 / 10% $0 / 10% $0 / 10% $0 / 10% $0 / 10% $0 / 10% $0 / 10% $0 / 10% $0 / 10% $0 / 10% Hospital Inpatient/Outpatient Facility/Professional Services Copay / Coinsurance Current Employees, 2009 New Hires, 2012 New Hirees & 2015 New Hires $0 / 10% $0 / 40% $0 / 10% $0 / 40% $0 / 10% $0 / 50% $0 / 10% $0 / 50% $0 / 10% $0 / 50% $0 / 10% $0 / 50% 6. Pensions and Retirement Security a. DTV Employees shall be eligible to participate in the benefit plans on the same terms, conditions and provisions in effect as of the effective date of this MOA as provided to similarly situated DIRECTV non-bargained employees, as described in the applicable Summary Plan Description and Summary Material Modifications, except as noted herein. AT&T Retirement Savings Plan DIRECTV Program of the AT&T Pension Benefit Plan Summary Page 12

13 b. Effective June 1, 2017, DTV Employees DIRECTV Program benefit will not be credited with additional compensation or service. However, Interest Credits, where applicable, will continue to apply. c. Effective June 1, 2017, Employees shall be eligible to participate in the following benefits plans as defined in Article 19 of the 2015 AT&T Corp. bargaining Agreement for 2009 New Hires, 2012 New Hires, and 2015 New Hires. AT&T Retirement Savings Plan Bargained Cash Balance Program #2 of the AT&T Pension Benefit Plan 7. Other Benefits a. All employees will be covered by the AT&T Tuition Assistance Plan (TAP) b. All employees covered by this agreement will be eligible to participate in all AT&T Employee Discount programs. 8. Grievance and Arbitration Procedures a. Employees have a means to resolve disputes thru a three (3) step grievance procedure. b. Grievances must be filed within 60 calendar days of the disputed action. c. If the grievance procedure does not result in the settlement of differences, the Union may advance the grievance to arbitration for an impartial arbitrator to hear the case. Summary Page 13

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